Cascades Sonoco Invests $16 Million in Birmingham, Ala., Facility
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Cascades Sonoco, a joint venture of Sonoco Products Co., Hartsville, S.C., USA, and Cascades Inc., Canada, this week announced the investment of approximately $16 million for the expansion of its existing Birmingham, Ala., facility. This investment in world-class water based coating technology will provide coated paper and paperboard substrates using its new FlexShieldT, FluteSHIELD®, and SurfSHIELDT coating technology.
These coatings, recently introduced to the folding carton and corrugated industries, are revolutionary water-based functional and barrier coatings designed to replace the standard LDPE coating used in take-out container folding carton applications, as well as wax replacement technology for the corrugated industry. They offer solutions that are recyclable, repulpable, and compostable.
"This investment represents a significant geographic expansion for water-based products by Cascades Sonoco, especially in the fast-growing southeastern U.S.," said Rodger Fuller, SVP of Sonoco's Paper & Engineered Carriers, U.S. & Canada, and Display & Packaging. With this exciting addition to its product portfolio, Cascades Sonoco remains dedicated to maintain its market leadership position in protective roll packaging for the paper industry."
Luc Langevin, president and COO of Cascades Specialty Products Group, added that "we also wish to acknowledge the support of the Birmingham Business Alliance and all of our partners, as it influenced our decision to invest in the region. This strategic investment certainly helps Cascades Sonoco expand its product offerings into high-growth consumer-oriented markets."
Installation of the new equipment and expansion of the existing Birmingham facility will begin early this year, and startup is expected in the second quarter of 2018. Once at full capacity, the new water-based coating line will be capable of producing 40,000 - 50,000 tons of sustainable coated materials annually.
"The Jefferson County Commission is pleased that Cascades Sonoco has decided to invest more than $16 million to expand its operations in our community," said Jefferson County Commissioner David Carrington. "This long-term commitment in capital and increased employment is a testament to our business climate and workforce."
Founded in 1964, Cascades produces, converts, and markets packaging and tissue products composed mainly of recycled fibers. The company has 11,000 employees, who work in close to 90 production units located in North America and Europe.
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of nearly $4.8 billion, the company has 20,000 employees working in more than 300 operations in 35 countries, serving some of the world's best known brands in some 85 nations.